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PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
PMRG Segmentation POV 1007
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PMRG Segmentation POV 1007

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  • 1. 1
  • 2. Presentation F P i Framework k What we won’t do: won t Teach “Research 101” Teach or discuss analytic techniques What we will do: Identify “pitfalls” that most often derail segmentation studies Provide tips on how to maximize the utility of a segmentation study 2
  • 3. Marketers Marketers’ #1 Marketing Priority Supports Segmentation As A Strategy Understanding Our Customers a Key Initiative 3
  • 4. Why S Wh Segment? ? Customers rarely have identical “needs” and companies needs cannot be all things to all people Segmentation g p consumers based on p g groups purchase/use/Rxing g relevant behaviors, attitudes, characteristics and needs Marketing Approaches Undifferentiated Segmented Atomized Mass Marketing g Targeted Marketing One-to-One One to One Marketing 4
  • 5. Every Segmentation is Similar E S i i Si il Common Goals Obtain greater customer understanding Identify competitive advantage/marketable PoD Achieve greater customer relevance Maximize marketing efficiencies given ever-shrinking resources Align brand goals w/ marketing strategy/tactics $$ Grow share/revenue $$ PoD: Point of Differentiation 5
  • 6. Every Segmentation is Different E S i i Diff Unique Goals Every brand has its unique set of challenges Segmentation must be designed to address the unique challenges of the brand Examples: Generic Entry G i E t Managed Care Pressures New Product Launching Overcrowded M k t O d d Market 6
  • 7. Traditional A T di i l Approach h Heavy reliance on statistics to “discover” segments discover Segmentation precedes (and is used for) strategy development Methods for how to implement segment tactics considered AFTER completion of the segmentation Resulting i R lti in: Segmentation that may or may not be linked to core competencies Segment drivers are unrelated to marketing issues / capabilities g g p Segment opportunity based on “presumed” rather than assessed potential Limited actionability and failed expectations 7
  • 8. Proposed N A P d New Approach h Segmentation ought to be constructed to meet specific brand objectives and challenges “Tie-backs” to planned/potential marketing tactics should be built into the study design to ensure “actionability” Test potential “solutions” to estimate opportunity Select S l t analytic techniques as is appropriate, proceeding l ti t h i i i t di from simple to complex techniques Tell a compelling story about how the brand can reach its objective and overcome challenges Linked to core competencies Provide “tools” for P id “t l ” f marketing application k ti li ti 8
  • 9. Section 2 Case Studies 9
  • 10. Segmentation E S i Example l Objective: Segmentation that provides direction for developing promotional effort; learn what role BRAND plays in management “Habits and Practices – A/O Type Survey Habits Practices” attitudes abt DISORDER & Tx (> 100 items) character of disorder product use patterns customer characteristics/demos Develop Attit di l D l Attitudinal benefits desired Factors evaluation of market offering use of informational channels Apply Clustering / pp y C uste g Grouping Technique Self Blaming Self-Blaming Reluctantly Deprived but Rx Rejecter N t R R j t Naturalist li t Rx Receptive R R ti and Ashamed Reliant “Dealing” 10
  • 11. Segmentation E S i Example l Factor Scores by Segment y g 1.5 1 0.5 0 -0.5 -1 -1.5 Factors: Product Rx Multiple Stress Pro-OTC Pro-Rx Advocates Personal Guilt and Reliant Cautious Impacts of “Natural” Impact Shame Rx Receptive Reluctantly Reliant Self-Blaming Self Blaming and Ashamed Naturalists Rx Rejecters Deprived but “Dealing” NOTE: Shows acceptable within-group homogeneity11 across-group heterogeneity and
  • 12. Segmentation E S i Example l Seg e s Segments by S e, CO Size, CONDITION Se e y a d Rx Use O Severity and More Rx Receptive p M Highlights the relationship Self-Blaming & between CONDITION severity and Rx Use se Ashamed % Rx Us Reluctantly “Need” drives Rx Use Reliant Naturalist Less Deprived by “Dealing” Rx Rejecter j Less % Severe More 12
  • 13. Segmentation E S i Example l Seg e s Segments by Key Op o s ey Opinions More Rx Receptive NEED + Risk : Benefit analysis discriminates ived Need for Rx Assistance Reluctantly Reliant receptivity to Rx option Rx Rejecter R Self-Blaming and Ashamed Naturalist Percei Deprived but “Dealing” Less Less Rx Benefits Outweigh Risk More 13
  • 14. Segmentation E S i Example l Product Use Index by Seg e s oduc de Segments 1.5 1.41 1 Number of OTC meds mber of Meds - Mean 0.50 0.58 Number of Rx meds 0.5 0.15 0.07 0 -0.15 -0.10 -0.16 -0 33 0.33 Num 05 -0.5 0 37 -0.37 -0.47 -0.57 -1 Rx Receptive Reluctantly Self-Blaming Naturalist Rx Rejecter Deprived but Reliant & Ashamed “Dealing” Dealing Selected Targets 14 NOTE: Current usage patterns used as proxy for potential
  • 15. Patient S P i Segmentation Example i E l Rx Receptive: Summary Recommendations Main Challenge: Although BRAND enjoys high share in this group, expanding share will require promoting benefits relative to other MOAs; high concomitant OTC use Recommended Response Strategy: Differentiate BRAND from MOAs on efficacy, safety and side effects efficacy Messages for market penetration/expansion: Effectively managing CONDITION is important; BRAND is highly effective, safe effective safe, with fewest side effects Media Preferences Print ads may be most effective for communicating the substantive information they require to decide 15
  • 16. Assessing “Action-ability” A i “A i bili ” Traditional Criteria Differentiated Real / Reliable Relevant Identifies target segments Make “marketing sense” g Reachable Is this enough? 16
  • 17. Gaining G G i i Greater “A i “Action-ability” bili ” Today s Today’s Additional Requirements Provide information that supports strategy for achieving brand goals Provide estimates of segment opportunity and potential ROI to better f b tt focus marketing efforts k ti ff t Provide a mechanism for guiding the development of tactics and media plans Provide targeting tools 17
  • 18. Use Segmentation P U aS i Process 1 2 3 4 Establish the Animate and Prepare Test /Analyze Framework Implement • Conduct Discovery • Build the Sampling • Develop Analytic • Create Profiles Frame Approach • Convene the Team • Build Segment g • Design the Qnr Identifying Tools • Kick-Off the Project • Link Segment • Create the Results to Media Db Segmentation p Blueprint 18
  • 19. Re-Segmentation E R S i Example l Re-segment Re segment consumers on dimensions that differentiate willingness to use BRAND Size and characterize segments Identify / Prioritize segments such that: BRAND penetration / uptake is optimized Marketing productivity and ROI is maximal Obtain information that will guide messaging and promotional development for generating trial and usage of BRAND NOTE: Objectives are re-defined in terms of furthering the brand’s ultimate goals 19
  • 20. Re-Segmentation E R S i Example l Define the Potential Patient Population US Female Population 109.2 MM Past Year Sufferer 59.1 MM No CONDITION Non-Qualified Sufferers 15% 55% 45% Potential Patient Qualified 30% Population Sufferers 32.8 MM Yes CONDITION Must determine inclusion criteria Past Year and comprised the potential customer pool 20
  • 21. Re-Segmentation E R S i Example l Identify strategies for achieving brand growth Must be a viable strategy for brand 32.8 MM Qualified Sufferers Maintain/Cultivate 30% Current BRAND User Non-Rx 80% 20% Rx Users Users 70% 26.2 MM 6.6 MM Competitor User EXPAND Rx EXPAND MARKET SHARE Switch Informs Sampling Plan 21
  • 22. Re-Segmentation E R S i Example l Survey Content Experience of condition and Hx of management Needs identification Drivers of a medication choice Perceived benefit of resolving CONDITION Evaluation of BRAND/Competitors p Barriers to Rx User/BRAND use Solutions to barriers and the degree to which potential solutions address barrier Linking questions to CRM and media database 22
  • 23. Re-Segmentation E R S i Example l Needs, Rx Motivations Needs Rx-Motivations, Brand Appeal Barriers Potential for Appeal, Barriers, Overcoming Barriers Differed by Rx Status/Hx Rx status linked to strategy Potential Strategies Maintain & Switch Cultivate Greater Competitor Attract Non- Usage Users Rx Users Segmentation Conducted for Each Strategy g gy Segments Segments Segments 23
  • 24. Re-Segmentation E R S i Example l Targets were chosen within strategy group Brand Team owns the final prioritization A. Expand Share B. Expand Market Maintain/Cultivate M i t i /C lti t Switch S it h Attract Att t Competitor High BRAND BRAND Loyal Loyal Potential BRAND Potential Switchers Indeterminate Vulnerable BRAND Appeal High BRAND Potential Potential Switchers Low BRAND BRAND Appeal Low Potential 24
  • 25. Re-Segmentation E R S i Example l Profiles included not only segment size but estimates of BRAND’s “real” potential Satisfaction with BRAND Evaluation Current Approach Degree to which Barriers Perceived Need can be Overcome Apply Established Algorithms for Estimated Potential Estimate Segment Potential % and # of patients expressing high likelihood to stay on/take BRAND 25
  • 26. Re-Segmentation E R S i Example l Segment scoring tools created for identifying segment members in: CRM patient registry Media databases (e.g., MARS, Simmons) Provides in-depth media usage information used to develop media plans Screening subsequent research participant for segment specific follow up follow-up research 26
  • 27. Re-Segmentation E R S i Example l Segmentation Outcomes Segmentation of patients along dimensions that impact the brand’s potential for growth Estimates f E ti t of segment’s “ l” potential and di ti about which t’ “real” t ti l d direction b t hi h segments might be most responsive to promotional effort Linkages to MARS database, enabling the Development of Tactics and M di Pl d Media Plans Multiple targeting tools for identified “uses” of the segmentation 27
  • 28. Section 3 Segmentation Guidelines 28
  • 29. Segmentation Phil S i Philosophy h Segments are not “out there waiting to be found; there is out there” not “one right way” to segment a market Statistical prowess and analytic tools alone are not enough There are no “cookie cutter” or “black box” systems that will do an adequate job Segmentation must be custom fit to your brand’s goals, S t ti tb t t b d’ l markets and competitive situation Segmentation research must be goal directed 29
  • 30. Segmentation P S i Process 1 2 3 4 Establish the Animate and Prepare Test /Analyze Framework Implement • Conduct Discovery • Build the Sampling • Develop Analytic • Create Profiles Frame Approach • Convene the Team • Build Segment g • Design the Qnr Identifying Tools • Kick-Off the Project • Link Segment • Create the Results to Media Db Segmentation p Blueprint 30
  • 31. 1 Prepare 2 Establish Framework Plan f “ i Pl for “action-ability” bili ” 3 Test / Analyze 4. Animate / Implement Identify end users of the segmentation and learn how they will be tasked to use the results Know what marketing tactics are available for advancing brand strategy To the extent possible, build in methods for tactical utility “Begin with the end in mind” 31
  • 32. 1 Prepare 2 Establish Framework Conduct Di C d Discovery 3 Test / Analyze 4. Animate / Implement Re/Evaluate results from existing research to inform the brand’s challenge Primary and Secondary Sources Identify significant “gaps” in knowledge and conduct research to “fill in” gaps Typically qualitative but can be short “quant” surveys (e g screener qualitative, quant (e.g., or omnibus studies) Confirm the boundaries of the target market Market sizing research Target list development 32
  • 33. 1 Prepare 2 Establish Framework Convene the “Team” C h “T ” 3 Test / Analyze 4. Animate / Implement Team Members Leveragable segmentation Brand VP / Director requires a strong partnership Product M P d t Managers between all charged with advancing the brand Medical 7 – 9 Core Team members Regulatory ideal; group size beyond 12 – Market R M k t Research h 15 tend to lose effectiveness Competitive Intelligence Managed Care Director Ad A Agency Sales Leadership 33
  • 34. 1 Prepare 2 Establish Framework Study “Kick-off” S d “Ki k ff” 3 Test / Analyze 4. Animate / Implement Create the segmentation blueprint informed by strategy blueprint, 34
  • 35. 1 Prepare 2 Establish Framework Sampling Frame S li F 3 Test / Analyze 4. Animate / Implement Patient Segmentations All sampling frame records are pre- pre appended with data enhancement At minimum, geo-demographic and CONDITION data Syndicated segmentations PRIZM P$YCLE Other “list” characteristics list Pre-appending data enhancements ensures 100% coverage of data to be used for creating a DB scoring g g model Database variables also offer potential segmentation variables 35
  • 36. 1 Prepare 2 Establish Framework Design h Survey D i the S 3 Test / Analyze 4. Animate / Implement Design to “test” and address “hypotheses” test hypotheses Potential segmentation dimensions Test tactical “solutions” to brand growth barriers and quantify incremental business that can be realized from addressing the barrier Include Qs that provide linkage to tactical DBs 36
  • 37. 1 Prepare 2 Establish Framework Segmentation A l i S i Analysis 3 Test / Analyze 4. Animate / Implement Traditional Approach: Exploratory and statistically-driven statistically driven 37
  • 38. 1 Prepare 2 Establish Framework Segmentation A l i S i Analysis 3 Test / Analyze 4. Animate / Implement New Approach: Objec es d e e pp oac Objectives-driven Guided Analysis Analyses conducted to test/investigate hypotheses about y g yp Segmentation Blueprint t what advances brand’s objective 1 Inputs should include data from primary research and available databases Segments are formed based on direction contained in the 2 segmentation blueprint “Grouping” technique selected as is appropriate for the data Result reviewed for refinement/revision to achieve maximal 3 utility for furthering brand objectives 38
  • 39. Strategy: Acquire Tell E h S T ll Each Segment’s Story ’ S Priority: High 39
  • 40. Implementation I l i Profiles provide foundation for positioning work Typing tools / Database scoring Sales Targeting Media Planning 40
  • 41. Implementation I l i “Best” segmentation will fail unless the company is committed Best to and capable of executing segmentation strategy The implementing company must: Have the discipline to concentrate resources on high potential target segments and ignore others Understand how to tailor persuasive messages for each target p g g segment Exercise skill in using information to make media buys or effective direct marketing p g g programs Possess the capability to customize marketing mix for target segments for optimal penetration 41
  • 42. Summary Market segmentation must be designed to meet specific brand objectives and overcome specific challenges Market segmentation research must be carefully planned to ensure maximal actionability once completed Segmentation as a marketing approach must be supported at all levels of an organization 42
  • 43. For more i f information, please contact . . . i l Anthony Bogle Director, Market Research, Sanofi-Aventis Susan Lee Simpson Thomas M. Mills M VP, Client Services, Burke Statistical Consultant, Burke 513-564-8382 513-564-8381 susan.simpson@burke.com susan simpson@burke com thomas.mills@burke.com thomas mills@burke com 43
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